Will Gold Make It 9 Out Of 9?

For the past eight years-in-a-row, that worthless yellow barbarous relic that some call 'Gold' has outperformed the 'precious' Dow Jones Industrial Average (even with the constant DJIA re-indexing where the losers are quietly taken out back and shot). As we enter the last day of trading in 2012, Gold still holds a slight edge +6.3% on the year vs the Dow's +5.9%. Will 2012 break the record-breaking run? Or will Warren Buffett's nemesis once again outperform equities and with lower volatility - just a few more hours to find out...

"Discussing the depreciation of the dollar since 1939, the National City Bank in its "Monthly Letter" dated December 1951 made the following pertinent comments, as, true today (1961) as they were then:
"Gold has had the best record over centuries as a store of value (a vital function of money which many economists nowadays forget). Paper money has been good when issued by banks which have been under a legal obligation to maintain convertibility into gold at the option of the dollar. . . . Paper money directly issued by National Treasuries has the worst record, though money can be just as bad if it is put out by a bank of issue which is free from the necessity of maintaining gold convertibility and bonds to the
wishes of a profligate government for cheap financing. Most of the worthless currencies issued in foreign countries during and after the war bore the stamp of a corrupted Central Bank of issue. "

I was taught by a lawyer to use phrases that couldn't possibly be true. Never call Buffett a pedophile, junkie, thief, crook, etc. They are all demonstrably true or false. Phrases like weasel, hoser, dork, lizard-brained monkey, slime mold, etc are court-free concepts.

I wonder if Doug Kass will make another year-end prediction for $600 gold like he did two years ago. (I don't recall him even mentioning gold a year ago in his predictions for 2012).

As for Buffett, just once I'd like to see him and Charlie "Sleestak Magoo" Munger appear on CNBC in their normal, everyday state: sitting in executive-class geriatric playpens, attired in bibs and soiled diapers, as illegal immigrant nursemaids feed them their strained prunes.

Gun and ammunition prices will reach new record prices, driven by the words and actions of opportunistic politicians, and by the public's uneasiness with where the economy is heading. We truly live in interesting times, and it is only going to get more interesting.

I was at the Gun Show in Chantilly, VA this past weekend... the record prices are already here. 5.56 green-tip ammo that used to sell for $420 per 1,000 rounds was selling for $1,000. AR-15's that were selling for around $1,000 were selling between $3K and $4K. Magpul 30-round mags that carried a retail price of $15, were being sold for $70.

The world is seeking hard assets. It always has, it always will. Will gold have up's and down's? Yes. Will gold's value remain through out the generations? I would say it has a better shot than a piece of paper with pretty pictures owned by a dying empire aided by a sliding social and lawless political class.

If you take the five dollars that Henry Ford was paying his workers for a day's work in 1914; the silver in those five silver dollars would be currently worth over $115. Today, that's an hourly wage of over $14.00. Those five silver dollars have held their 'value,' while in terms of FRN's; five 'dollars' will barely cover a Big-Mac Meal at the Golden Arches.

What's in your wallet?

[Edit: if Henry Ford's workers had taken the $5 they were paid and simply bought 10 ounces of silver bullion (selling for around $0.50/ounce at the time) today, that day's wages would be worth over $300.00, or $37.50/hour.]

one can't compare historic values of silver/gold to today. we are in a completely different time period.

that's like charting the number of horse and buggies vs. gdp and coming to the 'conclusion' that because we have fewer horses used in transport today in the economy today vs 1902, today is 'weaker' economy LOL... those old metrics don't work...

people used to use silver as money, but now no one buys anything with silver... although one can make the argument that the next real currency will be bitcoins (or something similiar) since I can actually use them to buy stuff right now (and so are Iranians for that matter)

The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit…In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the govt would have to make its holding illegal, as was done in the case of gold… The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the “hidden” confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights.

Now let's take a look at gold vs. S&P 500 and at gold vs. Nasdaq. Stocks have had a much better year than gold. That doesn't change anything about gold or about the past years. And I am not saying I am able to explain how or why.

As someone else mentioned in the YouTube video comments, the singing is drowned out by the clashing and proportionally too loud instruments; the vocals need to be proportionally lounder and clearer, so that we can make out the words; something too many singers don't appreciate, leading to lots of ridiculous, misheard, "Chinese Whispers" song lyrics on the internet.

We need lots more people to properly hear the messages about our insane financial system, so that it stops boring us with it's slow lingering death, so that we can spend more time on more interesting stuff than financial self-preservation.

I have Physical Bullion as a store of value, but it really is quite boring sitting as bars in a Vault; although my separate SBSS Silver Bullion Medalions are amusing to keep and show people, because they mock the corrupt establishment.

While I appreciate your efforts at a mixing and mastering critique I will take that under advisement; this little ditty's been played thousands of times on various internet radio stations and for whatever reason only the folks at Zero Hedge have difficulty discerning the lyrics. Might have something to do with Youtube's compression algorithms, perhaps something else entirely.

I think it might be a psychological reaction like "NO! This CAN'T be a lesson in hard economics set to music!" Or maybe it's the cameo shout by the Mogambo Market Guru in the third verse that scares people's ear canals...